Indian Farm Cost Concepts for Agricultural Economic Analysis

Implements commonly used Indian farm cost concepts for agricultural economic analysis, including Cost A1, A2, B1, B2, C1, C2, and C3. Tools are provided to calculate cost concepts from farm-level input data, aggregate costs across groups, summarize distributions, compute returns and benefit-cost ratios, estimate cost of production and break-even values, decompose cost shares, conduct one-way sensitivity analysis, and visualize concept-wise costs. The implementation is designed for reproducible farm management and cost-of-cultivation studies.


IndFarmCost

IndFarmCost is an R package for calculating and analysing the Indian farm cost concepts A1, A2, B1, B2, C1, C2, and C3 used in agricultural cost-of-cultivation and farm management studies.

Cost concepts implemented

Concept Formula implemented
A1 Sum of specified A1 cost components
A2 A1 + rent paid for leased-in land
B1 A1 + interest on owned fixed capital excluding land
B2 B1 + rental value of owned land + rent paid for leased-in land
C1 B1 + imputed value of family labour
C2 B2 + imputed value of family labour
C3 C2 + managerial charge; default is 10% of C2

The managerial rate is configurable through managerial_rate.

Main features

  • farm_costs() - calculate A1 to C3 for each farm/observation.
  • farm_costs_aggregate() - aggregate cost concepts by crop, state, farm size, or other grouping variables.
  • summarize_costs() - descriptive statistics and coefficient of variation.
  • farm_returns() - gross return, net returns, and benefit-cost ratios.
  • cost_of_production() - unit cost under a selected cost concept.
  • break_even_price() and break_even_yield() - break-even analysis.
  • cost_shares() - additive cost decomposition and percentage shares.
  • cost_sensitivity() - one-way sensitivity analysis for an input cost.
  • plot.farmcost() - base-R concept-wise cost plot.
  • farm_cost_example() - ready-to-use example farm dataset.

Installation from a local source package

install.packages("IndFarmCost_0.1.0.tar.gz", repos = NULL, type = "source")

Quick example

library(IndFarmCost)

dat <- farm_cost_example()
costs <- farm_costs(dat)
costs[, c("farm_id", "crop", "A1", "A2", "B1", "B2", "C1", "C2", "C3")]

summary(costs)
plot(costs, row = 1)

farm_returns(
  costs,
  main_output = "main_output_q",
  main_price = "main_price_rs_q",
  byproduct_output = "byproduct_output_q",
  byproduct_price = "byproduct_price_rs_q"
)

Methodological note

The package follows the standard structure of Indian cost concepts used in cost-of-cultivation studies. Users should verify the valuation rules, wage imputation, rental valuation, interest rates, and any study-specific treatment of inputs against the methodology applicable to their dataset and reference period.

Reference manual

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install.packages("IndFarmCost")

0.1.0 by Chiranjit Mazumder, a month ago


Browse source code at https://github.com/cran/IndFarmCost


Authors: Chiranjit Mazumder [aut, cre] , Mrinmoy Ray [aut] , Utkarsh Tiwari [aut]


Documentation:   PDF Manual  


GPL-3 license


Suggests knitr, rmarkdown, testthat


See at CRAN